Oil prices continue to fall due to rising US inventories and fears of weak demand

Oil prices fell today Wednesday after data showed that US crude oil inventories rose more than expected amid fears of falling fuel demand due to increased cases of “Covid-19. ” in China, the largest crude oil importer in the world.

THE future on Brent crude oil fell 44 cents, or 0.5%, to $ 94.92 a barrel by 04:54 GMT, while future US West Texas Intermediate crude oil fell 53 cents, or 0.6%, to $ 88.38 a barrel.

Both benchmarks fell around 3% on Tuesday.

U.S. crude oil inventories increased by about 5.6 million barrels in the week ending November 4, according to market sources, citing data from the American Petroleum Institute, while seven analysts interviewed by Reuters estimated that crude oil inventories will increase. in media of 1.4 million barrels.

Cases of “Covid-19” have increased in Guangzhou and in other Chinese cities, as the global manufacturing hub has become the latest “Covid” focus in the country.

However, supply problems remain with the imminent imposition of an embargo by the European Union on Russian crude oil and the reduction in production by the Organization of Petroleum Exporting Countries (OPEC) and its allies, in the OPEC + grouping.

The European Union will ban imports of Russian crude oil by 5 December and Russian petroleum products by 5 February, in response to the Russian invasion of Ukraine.

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